KARACHI, March 19: Physical activity on the cotton market on Tuesday maintained on the higher side as spinners were not inclined to have a look at their inventories in the backdrop of some positive developments on the export front.

Physical shipment of textiles to foreign destinations are still far behind the initial targets but a good beginning has been made followed by increase in quota by the European Union and the US, although it will take quite some time to attain normalcy.

This fact was fully demonstrated by some leading textile groups who further raised their bid prices for the fine lint, of course, after having made sales at the much higher rates, says a ginner.

The deal in question is from the southern Punjab ginnery, which fetched the mid-season’s highest price of Rs1,890 per maund without 15 per cent sales tax.

“This rate is claimed to be slightly above the ruling world prices and may have a lot of logic behind it,” says a leading broker, adding “it has generated a lot of optimism among the ginners, notably those who had purchased phutti at much higher rates earlier in the season and were at a loss.”

The chang in spinner mood is reflective of the fact that normalcy is returning to the export business and there is no reason to fear that the current textile year could end on an optimistic note after clearing the early mess by the TCP.

Although the private sector exporters now have become active, but their role as a third force was well below their normal activity. Last season their total tally by March was about half a million bales as compared to modest purchases of about 75,000 bales.

With the strong presence of the TCP in the market ginners still holding fine lots in standard export and commercial packing could be chief beneficiary if they did not waver during the next three months, market sources said.

The future cotton outlook appears firm despite the fact that spinners and mills have nothing to worry about the supply position as higher unsold stock of 1.5 million bales and higher crop estimate of 10.6 million bales means a large exportable surplus, ginners said.

There was no change in the official spot rates as overnight gain was fully consolidated thanks to the presence of mill demand.

Ready business was moderately active as till late in the evening about 6,000 bales changed hands, the following being some of the notable deals:

SINDH VARIETY: 500 bales of Sanghar at Rs1,500, 600 bales at Rs1,535, 500 bales, Rasoolabad at Rs1,725, 600 bales, Rohri at Rs1,800, 600 bales, Dharki at Rs1,800 and 400 bales of Gothki at Rs1,800.